diff --git a/packages/cli/lib/commands/create.js b/packages/cli/lib/commands/create.js
index e8f6cc5d7..33e1fd23b 100644
--- a/packages/cli/lib/commands/create.js
+++ b/packages/cli/lib/commands/create.js
@@ -37,8 +37,8 @@ const capitalize = str => str.charAt(0).toUpperCase() + str.substring(1);
 
 const options = [
 	{
-		name: '--name',
-		description: 'The application name',
+		name: '--template',
+		description: 'The template name',
 	},
 	{
 		name: '--cwd',
@@ -78,11 +78,16 @@ const options = [
 ];
 
 // Formulate Questions if `create` args are missing
-function requestParams(argv, templates) {
+function requestParams(name, argv, templates) {
 	const cwd = resolve(argv.cwd);
 
 	return [
 		// Required data
+		{
+			type: name ? null : 'text',
+			name: 'name',
+			message: 'The name of your application',
+		},
 		{
 			type: argv.template ? null : 'select',
 			name: 'template',
@@ -96,12 +101,7 @@ function requestParams(argv, templates) {
 			message: 'Remote template to clone (user/repo#tag)',
 		},
 		{
-			type: argv.dest ? null : 'text',
-			name: 'dest',
-			message: 'Directory to create the app',
-		},
-		{
-			type: prev => (!dirExists(cwd, prev || argv.dest) ? null : 'confirm'),
+			type: !dirExists(cwd || name) ? null : 'confirm',
 			name: 'force',
 			message: 'The destination directory exists. Overwrite?',
 			initial: false,
@@ -114,11 +114,6 @@ function requestParams(argv, templates) {
 			},
 		},
 		// Extra data / flags
-		{
-			type: argv.name ? null : 'text',
-			name: 'name',
-			message: 'The name of your application',
-		},
 		{
 			type: 'confirm',
 			name: 'install',
@@ -206,12 +201,12 @@ async function copyFileToDestination(srcPath, destPath, force = false) {
 	}
 }
 
-async function command(repo, dest, argv) {
+async function command(name, argv) {
 	validateArgs(argv, options, 'create');
 	// Prompt if incomplete data
-	if (!repo || !dest) {
+	if (!name || !argv.template) {
 		const templates = await fetchTemplates();
-		const questions = requestParams(argv, templates);
+		const questions = requestParams(name, argv, templates);
 		const onCancel = () => {
 			info('Aborting execution');
 			process.exit();
@@ -219,18 +214,18 @@ async function command(repo, dest, argv) {
 		const response = await prompt(questions, { onCancel });
 
 		Object.assign(argv, response);
-		repo = repo || response.template;
-		dest = dest || response.dest;
+		argv.template = argv.template || response.template;
+		name = name || response.name;
 	}
 
-	if (!repo || !dest) {
+	if (!argv.template || !name) {
 		warn('Insufficient arguments!');
 		info('Alternatively, run `preact create --help` for usage info.');
 		return;
 	}
 
 	let cwd = resolve(argv.cwd);
-	let target = resolve(cwd, dest);
+	let target = resolve(cwd, name);
 	let isYarn = argv.yarn && hasCommand('yarn');
 	let exists = isDir(target);
 
@@ -256,31 +251,28 @@ async function command(repo, dest, argv) {
 		}
 	}
 
-	// Use `--name` value or `dest` dir's name
-	argv.name = argv.name || dest;
-
-	let { errors } = isValidName(argv.name);
+	let { errors } = isValidName(name);
 	if (errors) {
-		errors.unshift(`Invalid package name: ${argv.name}`);
+		errors.unshift(`Invalid package name: ${name}`);
 		return error(errors.map(capitalize).join('\n  ~ '), 1);
 	}
 
-	if (!repo.includes('/')) {
-		repo = `${ORG}/${repo}`;
-		info(`Assuming you meant ${repo}...`);
+	if (!argv.template.includes('/')) {
+		argv.template = `${ORG}/${argv.template}`;
+		info(`Assuming you meant ${argv.template}...`);
 	}
 
-	if (!fs.existsSync(resolve(cwd, dest, 'src'))) {
-		mkdirp.sync(resolve(cwd, dest, 'src'));
+	if (!fs.existsSync(resolve(cwd, name, 'src'))) {
+		mkdirp.sync(resolve(cwd, name, 'src'));
 	}
 
 	// Attempt to fetch the `template`
-	let archive = await gittar.fetch(repo).catch(err => {
+	let archive = await gittar.fetch(argv.template).catch(err => {
 		err = err || { message: 'An error occured while fetching template.' };
 
 		return error(
 			err.code === 404
-				? `Could not find repository: ${repo}`
+				? `Could not find repository: ${argv.template}`
 				: (argv.verbose && err.stack) || err.message,
 			1
 		);
@@ -338,7 +330,7 @@ async function command(repo, dest, argv) {
 			await fs.writeFile(entry, buf, enc);
 		}
 	} else {
-		return error(`No \`template\` directory found within ${repo}!`, 1);
+		return error(`No \`template\` directory found within ${argv.template}!`, 1);
 	}
 
 	spinner.text = 'Parsing `package.json` file';
@@ -359,17 +351,17 @@ async function command(repo, dest, argv) {
 	// Update `package.json` key
 	if (pkgData) {
 		spinner.text = 'Updating `name` within `package.json` file';
-		pkgData.name = argv.name.toLowerCase().replace(/\s+/g, '_');
+		pkgData.name = name.toLowerCase().replace(/\s+/g, '_');
 	}
 	// Find a `manifest.json`; use the first match, if any
 	let files = await glob(target + '/**/manifest.json');
 	let manifest = files[0] && JSON.parse(await fs.readFile(files[0]));
 	if (manifest) {
 		spinner.text = 'Updating `name` within `manifest.json` file';
-		manifest.name = manifest.short_name = argv.name;
+		manifest.name = manifest.short_name = name;
 		// Write changes to `manifest.json`
 		await fs.writeFile(files[0], JSON.stringify(manifest, null, 2));
-		if (argv.name.length > 12) {
+		if (name.length > 12) {
 			// @see https://developer.chrome.com/extensions/manifest/name#short_name
 			process.stdout.write('\n');
 			warn('Your `short_name` should be fewer than 12 characters.');
@@ -381,7 +373,7 @@ async function command(repo, dest, argv) {
 		await fs.writeFile(pkgFile, JSON.stringify(pkgData, null, 2));
 	}
 
-	const sourceDirectory = join(resolve(cwd, dest), 'src');
+	const sourceDirectory = join(resolve(cwd, name), 'src');
 
 	// Copy over template.html
 	const templateSrc = resolve(
@@ -413,7 +405,7 @@ async function command(repo, dest, argv) {
 	return (
 		trim(`
 		To get started, cd into the new directory:
-			${green('cd ' + dest)}
+			${green('cd ' + name)}
 
 		To start a development live-reload server:
 			${green(pfx + ' dev')}
diff --git a/packages/cli/lib/index.js b/packages/cli/lib/index.js
index 675b8726a..0f76b546a 100755
--- a/packages/cli/lib/index.js
+++ b/packages/cli/lib/index.js
@@ -41,7 +41,7 @@ commands.buildOptions.forEach(option => {
 buildCommand.action(commands.build);
 
 const createCommand = prog
-	.command('create [template] [dest]')
+	.command('create [name]')
 	.describe('Create a new application');
 commands.createOptions.forEach(option => {
 	createCommand.option(option.name, option.description, option.default);
diff --git a/packages/cli/tests/lib/cli.js b/packages/cli/tests/lib/cli.js
index 2fe9a96ac..c207a12a6 100644
--- a/packages/cli/tests/lib/cli.js
+++ b/packages/cli/tests/lib/cli.js
@@ -21,18 +21,20 @@ const argv = {
 };
 
 exports.create = async function (template, name) {
-	let dest = tmpDir();
+	const cwd = tmpDir();
 	name = name || `test-${template}`;
 
-	await cmd.create(template, dest, { name, cwd: '.' });
+	await cmd.create(name, { template, cwd, install: false });
+
+	const projectPath = join(cwd, name);
 
 	// TODO: temporary – will resolve after 2.x->3.x release
 	// Templates are using 2.x, which needs `.babelrc` for TEST modification.
 	// The 3.x templates won't need `.babelrc` for { modules: commonjs }
-	let babelrc = join(dest, '.babelrc');
+	let babelrc = join(projectPath, '.babelrc');
 	existsSync(babelrc) && unlinkSync(babelrc);
 
-	return dest;
+	return projectPath;
 };
 
 exports.build = function (cwd, options, installNodeModules = false) {